Some exceptional quarters from MDB and ESTC. SMAR is as well.
Just read through the Smartsheet earnings call and I am pumped. This thesis is playing out. They are not a project management platform, though they do that really well.
They are a workflow management and automation platform. That’s what I’m calling them now. They just released (so new they haven’t released the press yet) a GDPR automation accelerator. These accelerators are premade templates for workflows, automation, reporting, etc. These capabilities currently drive 9% of subscription revenues for $4.6M. A small base but kudos for them giving the data. That’s also a 22% increase over the previous quarter (Q4).
It’s worth a read, I really like their momentum and direction (vector).
Headline number was 55% total rev growth a slight deceleration from 58% in Q4. BUT subscription growth was 57% and same rate as Q4. Pro services grew at only 34% compared to 77% in Q4. This lower margin pro services deceleration is attributed to the accelerators and other capabilities requiring less services for on-boarding and expanding existing customers. Part of the thesis, let’s hope that continues.
S&M 59% of revenue compares to 54% in Q4 and 60% in year ago quarter on increased headcount. Fairly flat really.
DRR same as Q4 at 134% and better than year ago of 130%.
Average annual contract value impressive 48% increase.
Billings up 52% compared to 50% in Q1 year ago.
Full year guidance is basically 50% growth so looking at stable growth going forward, mid 50% range with expected beat and raise. Could more accelerator launches drive some upside?
Continued expansion of high value customers >$5K, >$50K, and >$100k. 56%, 117%, and 139% yoy customer count growth respectively.
A smashing quarter in my opinion, except for pro services and a little seasonality it’s a cut and paste of Q4.